Caddo Company produces floor mats used in gyms and dojos. The sales budget for four months of the year is as follows:

Company policy requires that ending inventories for each month be 15 percent of next month’s sales. At the beginning of July, the beginning inventory of mats met that policy.
Required:
Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

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Unit Sales Dollar Sales July 12,000 $ 240,000 August 50,000 1,000,000 September 30,000 October 28,000 600,000 560,000